At 37 Dorin Junghietu won the competition for the selection of Moldovagaz Board of Directors representing the Ministry of Energy. Born in the Republic of Moldova, Dorin graduated from the University of Oil and Gas in Ploiesti, holds a Master’s degree in Dispute Resolution from the University of Aberdeen, and has already gathered 15 years of professional experience in Romania, Turkey, Australia, Spain, Oman, Saudi Arabia, United Arab Emirates and Kazakhstan. He now has the opportunity to take the helm of Moldovagaz at a crucial moment for the company’s reinvention, in the midst of a process of reconfiguration of the energy system in the Republic of Moldova and its links with the European Union market.
Dear Mr. Dorin Junghietu, at less than 40 years of age, you are just a few procedural steps away from taking over as Moldovagaz’s new CEO, after having obtained the best score in the selection contest. What made you decide to apply for the board of directors and what do you think impressed the members of the evaluation committee?
The contest organized by the Ministry of Energy had a strong echo in the professional environment, but also in the society as a whole in the Republic of Moldova, being an absolute premiere for the local energy market. Respectively, as I suppose you know, the contest gathered several dozens of participants. Extensive international experience, working for some of the biggest oil companies in the world, the ability to see the big picture, as well as the analytical skills, I think were some of the key elements that impressed the members of the evaluation panel.
I started my career more than 15 years ago, working my way up from an engineer at the Petrotel refinery in Ploiești, to management positions in various world-renowned companies. I believe that the experience I have gained over these years can be a catalyst for the changes that the natural gas market in the Republic of Moldova is currently undergoing. Both the economic and political context is favorable and I would very much like to be able to contribute to the effort to implement the reforms needed to integrate the Republic of Moldova into the European Union by 2030.
I was born in the Republic of Moldova; my parents and children live here. The opportunity to come back home and be close to them was of course an important factor in my decision to run for a position on the Moldovagaz Board of Directors.
In the current context of energy security in the Republic of Moldova, what do you see as the biggest challenges for Moldovagaz?
The most important prerogative for Moldovagaz is to secure and supply natural gas to end consumers in the Republic of Moldova. Thus, for Moldovagaz, one of the biggest challenges at the moment is to ensure that (gas) resources will be available and, of course, at reasonable prices for consumers. In the same vein, we should not forget that Moldovagaz is the sole supplier of natural gas for the left bank of the Dniester, where the largest consumer is the Cuciurgan power plant, which also supplies consumers on the right bank of the Dniester. Thus, for the energy security of the Republic of Moldova, Moldovagaz must work with all partners to ensure the continuity, safety and reliability of gas supply to all consumers under its management.
What is your vision for the diversification of natural gas supply sources for the Republic of Moldova, given the current geopolitical context and relations with neighboring countries?
Liberalization of the natural gas market in the Republic of Moldova opens the door to vast opportunities. Firstly, it has cancelled the gas market’s exclusive dependence on SAP Gazprom and paved the way for free competition, which leads to the creation of a price based on commercial and free market criteria. This led to increased interest for various trading companies in the Moldovan market. We are aware that recently, the company ERU Europe has obtained a trading license and large companies, such as Romgaz and others, are in the process of obtaining licenses. This leads to the diversification of import sources, and the direct benefit for Moldovagaz is the variety of offers on the market. Of course, these processes are still at an early stage, but I am confident that we will succeed in creating competitive and attractive conditions for a dynamic development of the wholesale natural gas market.
In addition to the reforming processes taking place in Moldova’s domestic market, it is very important to develop strategic relations with our regional partners. As far as I am aware, the partnership between the Republic of Moldova and Romania has experienced an unprecedented dynamic in recent years. Given our shared history and language, I believe that this rapprochement is natural. But if we are to remain pragmatic, Romania is an oil and gas producing country with some of the largest reserves in Europe. The development and commissioning of the Neptune Deep project in the Black Sea does not leave us indifferent and we understand the need to develop technical capacities and close commercial relations.
The Republic of Moldova imports natural gas through natural gas transmission networks. It is therefore important to develop regional interconnection capacities in order to diversify import sources. We can benefit from the natural gas sources in the southern Balkan peninsula, such as liquefied natural gas terminals in Greece and Turkey. Let’s not forget that recently Shell International Trading Middle East Fze (part of the Royal Dutch Shell Group) and Botas signed a 10-year agreement under which Shell would supply up to 4 billion cubic meters of liquefied natural gas to Turkey from its global portfolio. Azerbaijan, with estimated natural gas reserves in excess of 3 trillion cubic meters, could also become an imported source of diversification for the Republic of Moldova as it already supplies natural gas to European consumers. Personally, I believe that it is important to develop interconnections, through expanded capacities, with Moldova’s northern neighbors as well. Ukraine has the largest natural gas storage capacities in Europe. Moreover, we must not leave the LNG terminals in Poland and the Baltic Sea littoral out of the equation.
More specifically, despite the significant investments made in recent years to increase capacity at interconnection points, the current networks have technical limitations that do not allow the transfer of large volumes, particularly in the south-north and west-east directions respectively. I believe that it is vitally important to find solutions to enable the natural gas transmission system to develop without hindrances, taking into account the requirements of Energy Package III.
How do you plan to approach the modernization of the existing infrastructure, given that a significant part of Moldovagaz pipelines and equipment have been in operation for more than 30 years?
The development of existing infrastructure takes place on the basis of its financing from the natural gas transmission and distribution tariffs or from the investments that transmission and distribution companies make, respectively, from their own return. In other words, from their own money, which cannot be covered by the tariff. All these investments must fulfil certain criteria related to legislative obligations, the need to ensure security of gas supply and the economic feasibility of the investments. Taking into account the above criteria and implementing a transparent procurement process, I believe that the existing infrastructure can be kept in optimal working order and developed in line with market needs.
In the context of the beginning of the negotiation process for accession to the European Union, the Republic of Moldova will have to adapt and harmonies its legislation with European legislation. We are talking here also about the technical standards and technical regulations for the safe construction, operation and exploitation of gas infrastructure objects. In the case of the Republic of Moldova, this critical infrastructure was largely designed and built on the basis of GOST standards. In this context, Moldovagaz also has an important role to play in ensuring that its proposed development and modernization plans take account of this new reality. Moreover, the negotiation process, as well as accession itself, opens up opportunities for attracting European funds from various development axes. Moldovagaz will have to ensure that it reforms itself to meet the rigors imposed by the European Union in order to be eligible for European funds.
Gas losses in distribution networks are a major concern. What solutions do you propose to minimize these losses and ensure better management of distribution networks?
From my experience in the operation of hydrocarbon transport and processing plants, I know that losses can have the following origins:
- Artificial losses – usually generated by an inadequate calculation methodology;
- Technological losses represented by technological consumption of equipment (here it is necessary to verify that flows are metered and monitored);
- Losses generated by poor functioning of the measurement and control equipment;
- Physical losses due to non-tightness – they can generate serious technical incidents if not detected and solved in a timely and appropriate manner.
Last but not least, there are also losses due to unauthorized and unmetered consumption.
Solutions are to be proposed after a detailed analysis and a full understanding of the situation in Moldovagaz’s distribution companies. However, at this stage, I believe that the most accurate assessment of the real technical losses will be required, which is mainly based on methodologies for calculating technical losses, reconciled on the basis of material balances using measuring equipment. Once the origins of these losses have been detected, the appropriate measures should be taken (disconnection of unauthorized consumers, repair or re-calibration of metering equipment, installation of other types of metering equipment).
You referred to rigorous periodic technical inspection programs for gas transmission and distribution networks. What specific measures do you intend to propose to improve the safety and efficiency of Moldovagaz’s operations?
Bearing in mind that most of the gas infrastructure in the Republic of Moldova is already more than 30 years old, this periodic technical inspection program needs to be developed on the basis of European technical standards.
Reliability is defined as the ability of a product or system to fulfil a specified function under specified technical conditions and within a specified time. Electrochemical, chemical, microbial, and parasitic current corrosion are the four types of soil corrosion that can affect the reliability of buried (underground) pipelines and pipeline systems that work in wet soil. These corrosion processes cause the pipe wall to shrink, which shortens the lifetime and service life. The specific measures I would propose to improve the safety and operating efficiency of the networks would total:
- Check corrosion protection systems frequently;
- Evaluate and improve the preventive maintenance process;
- Utilize advanced technologies for pipeline interior inspections in areas where ultrasonic examinations are not practical.
How do you see Moldovagaz evolving over the next 5-10 years and what organizational or strategic changes do you think are needed to achieve these goals?
Moldovagaz is the largest company in Moldova by turnover. In order to be competitive on the European market, it will have to undergo an extensive process of transformation in terms of its internal organization and vertical and horizontal structure, in accordance with European regulations and legislation.
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The full interview will appear in the forthcoming issue of Energynomics Magazine in early October 2024.
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